Deerfield’s Caterpillar Inc set to hike prices again, projects production delays

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Deerfield’s Caterpillar Inc set to hike prices again, projects production delays

Caterpillar Inc., the Deerfield, Illinois-headquartered world’s largest construction-equipment maker, said later this week that the American multinational construction machinery and equipment manufacturer, might be forced to hike prices amid a higher inflation alongside likely delays in production, however, the company had beaten analysts’ estimates for third-quarter profit and revenues.

Meanwhile, addressing to the fallouts of an industry-wide supply chain woe, Caterpillar CFO (Chief Financial Officer) Andrew Bonfield said, “This has been the first quarter where it (supply chain challenges) started to impact us significantly”.

Nevertheless, Caterpillar Inc had yet to experience any shutdown due to a global-scale supply chain constraint alongside a squeezed US labour market, added Bonfield. More importantly, while being asked whether a price-hike would impact Caterpillar’s product demands, Bonfield was quoted saying that he had reasons to believe the price hikes had been “sustainable within the market” amid sustenance of a “very strong” consumers’ demand.

Nonetheless, the Deerfield-based heavy equipment manufacturer also had raised an alarming bell over a decline in operating profit margin in the current quarter, though, it forecasted an increase in sales.

Caterpillar Q3 earning beats estimate as business borrowings for equipment soar

On top of that, according to Caterpillar third-quarter earnings’ report, the heavy machine manufacturer’s operational profit surged to $2.66 a share on an adjusted basis, beating an analysts’ estimate of $2.20 per share, while Caterpillar’s total revenues and sales propelled as much as 25.4 per cent higher to $25.40 billion, handsomely beating an analysts’ estimate of $12.48 billion.

Sales in Caterpillar’s construction business soared 30 per cent, while sales at the company’s energy and transportation wing climbed 22 per cent, as US business borrowings for equipment leapt strongly at the end of third quarter.